4. Using the prices below check to see if put-call parity holds for the October 2002 options with K=45. The prices below are closing prices on 9/13/02. Equity options expire on the third Friday of the expiration month. The annualized 3 month T-Bill rate on 9/13/02 was 1.645%. If it doesn't hold, give some reasons why. Microsft (MSFT) Last 7.4 26 49 Expiration Strike Sep 40 Oct 40 Jan 40 Apr 40 Sep 45 Oct 45 Jan 45 Apr 45 Sep 50 Oct 50 Jan 50 INIC 88864446 Call Open?hter Volume est 750 70 1860 101 3218 20 24 3386 13422 392) 5825 15) 5956 12 142 4546 43800 2719 23976 321 36773 8.3 10.5 11.6 3.1 5 7.1 8.8 0.35 1.85 4.3 Underlying stock price*: 47.91 Put Openhter Last Volume est 0.05 61371 0.85 2412 26305 2.55 111 20298 3.9 250 758 0.35 7491 28435 1.85 769 22082 4.1 1507 30475 5.7 6 1261 2.51 4121 18871 4.1 2095 18245 6.4 779 53261 Now using the more detailed prices below, check to see if there is a violation of put-call parity. Calls Bid Ask Bid Ask Vol Open Int Last Sale 5 Last Sale 1.85 4.9 5.1 Vol Open Int Puts 1151 566902 Oct 45.00 1.45 1.6 201 02 Oct 45.00 22196